If you’re one of the millions of Americans in retirement or planning for it, an annuity may be a wise investment. An annuity is an insurance product that’s part of any smart retirement plan, providing a steady stream of reliable income for the policyholder. A strategic and thoroughly researched annuity can be an invaluable tool for many people in various stages of retirement. Curious about the various types of annuities available? We’ve got some helpful information about deferred annuities and why they might be the right choice for your retirement plan.
What is a deferred annuity?
A deferred annuity is an investment contract which provides a financial safeguard during retirement. A deferred annuity delays payments to the policyholder until a set date. During the savings phase of a deferred annuity, the policyholder invests money into the account and accumulates interest. During the income phase of a deferred annuity, payments are delivered to the policyholder on a regular basis.
What are the advantages of investing in a deferred annuity?
- Provides protection against outliving your money in retirement
- Money invested is not taxed until it is withdrawn
- Investment can be made as a large lump sum or through regular contributions
- Earn tax-free interest and tax benefits
What are the disadvantages of investing in a deferred annuity?
- Payout is not immediate and will ultimately be taxed
- Surrender charges may occur if money is withdrawn early
At Insurance Hub, our knowledgeable agents and advisors are ready and waiting to assist with all your insurance needs. Furthermore, Insurance Hub is dedicated and committed to always putting the client first. Whether you’re looking for a deferred annuity or any other type of insurance plan, Insurance Hub has just what you’re looking for. For more information regarding deferred annuities as well as other insurance coverage, visit Insurance Hub’s website today at www.insurancehubusa.com.